2Common Proficiency Test Model Paper 2

BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT – 5 Time : 4 hours Maximum Marks : 200 The test is divided into four sections. Questions 1 to 200 have only one correct answer and carry + 1mark for each correct answer and – 0.25 mark for each wrong answer. SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) 1. Profit and Loss account is prepared for a period of one year by following (a) Periodicity concept (b) Business entity concept (c) Accrual concept (d) None of the above. 2. Basic concepts related to Balance Sheet are (a) Conservatism concept (b) Business entity concept (c) Going concern concept (d) Both (b) or (c) 3. Purchases for cash (a) Increase liability (b) Decrease assets (c) No change in the total assets (d) Increase assets 4. Difference in bank balance as per bank pass book and cash pass book may arise on account of (a) Cheque issued but not dishonoured (b) Direct payment by customer in bank (c) Cheque issued but not presented (d) All of the three Common Proficiency Test (CPT) Volume - II 109 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 5. Trade discount allowed at the time of sale of goods is (a) Recorded in Journal (b) Not recorded on book of accounts (c) Recorded in Cash book (d) Recorded in Sales book 6. Which of the following is not an asset (a) P & L A/c (Cr. balance) (b) Inventory (c) Goodwill (d) Cash 7. Purchases of goods on credit (a) Increase liability (b) Decrease assets (c) Increase assets (d) Both (a) and (c) 8. A bill of exchange is drawn on 1 January 2010 payable after 3 month. The maturity date of the bill is (a) 4 April 2010 (b) 31 March 2010 (c) 1 April 2010 (d) None of the above 9. The noting charges levied on dishonour of an endorsed bill by the notary public are to be finally borne by (a) Holder of the bill (b) Drawer of the bill (c) Drawee (d) Either (a) or (b) 10. Under inflationary conditions, FIFO method will lead to (a) Lower profit (b) Higher profit (c) Higher sales (d) No change in sales 11. Which of the following assets are to be valued at the lower of cost and net realizable values (a) Sundry Debtors (b) Long term Investment (c) Goodwill (d) Stock (Inventories) 12. Bad debts recovered account will be transferred to (a) Provision for doubtful debt A/c (b) P & L A/c (c) Bad debt A/c (d) Debtors A/c 13. Goods distributed as free samples is debited to (a) Advertisement A/c (b) Charity A/c (c) Purchases A/c (d) Goods A/c 14. State which of the following is not a foreign bill (a) A bill drawn outside India and made payable outside (b) A bill drawn outside India and made payable in India (c) A bill drawn in India and made payable in India (d) A bill drawn in India on a person resident outside India and made payable outside India. 110 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 15. Which of the following enhances the earning capacity of an asset? (a) Reduction in operating costs (b) Increase in working capacity of an assets (c) Replacing damage parts of an assets (d) Both (b) and (c) 16. Depreciation is a process of (a) Allocation of profit (b) Valuation of expenses (c) Segregation of profit (d) Appropriation of profit 17. Which of the following are fixed assets (a) Closing Inventory (b) Fixed deposits in Bank (for 3 years) (c) Prepaid Expenses (d) Patents 18. A Club paid subscription fees of Rs. 1,800 out of which Rs. 400 is prepaid. In such case (a) P & L A/c is debited with Rs. 1,400 (b) Rs. 400 is shown as current assets (c) Both (a) and (b) (d) None of the above. 19. If goods worth Rs. 2,000 returned to a supplier is wrongly entered in sales return books as Rs. 1,500 then (a) Gross profit will decrease by Rs. 4,000 (b) Gross profit will increase by Rs. 3,500 (c) Gross profit will decrease by Rs. 3,500 (d) None of the above 20. Gross profit is equal to (a) Opening stock + purchases – closing stock (b) Net profit – Expenses (c) Sales – Closing stock + purchases (d) Sales – Cost of goods sold 21. Sohan as a trader purchased goods for Rs. 5,00,000 and sold 70% of such goods during the accounting year ended 31st December 2009. The Market value of the remaining goods was Rs. 1,00,000. He valued the closing stock at Rs. 1,00,000 and not Rs. 1,50,000 due to (a) Conservatism concept (b) Cost concept (c) Money measurement (d) None of the above 22. Narain Brothers which was registered in the years 2009, has been following FIFO method for valuation of shares. It changed its method from FIFO to LIFO method in the year 2010. The auditor raised objection to this change in the method of valuation of investments. (a) Method can not be changed under any circumstances (b) Change in the method should be done only if it is required by some statute and change would result in appropriate presentation of financial statement (c) Change in the method should be done only with consent of the auditor (d) None of the above. Common Proficiency Test (CPT) Volume - II 111 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 23. The opening stock of the current year is over stated by Rs. 10,000. and closing stock is over stated by 17,000. These errors will lead the net income for the current year to be (a) Rs. 7,000 understated (b) Rs. 17,000 overstated (c) Rs. 7,000 overstated (d) Rs. 17,000 understated 24. When the overdraft as per cash book is the starting point and a cheque of Rs. 1,500 deposited into bank has not been recorded in cash book, then in the bank reconciliation statement it will be (a) Added by Rs.1,500 (b) Deducted by Rs.1,500 (c) Deducted by Rs.3,000 (d) Added by Rs.3,000 25. A draws a bill on B for Rs. 5,000. A endorsed it to C. B will pay the amount of the bill on maturity to (a) ‘C’ (b) Bank (c) ‘A’ (d) None of the above 26. On 1.04.2010 Ram draws a bill on Rahim for 2 months for Rs. 1,000, 4th June was a sudden holiday. Maturity date of the bill will be (a) 1st June, 2010 (b) 4th June, 2010 (c) 5th June, 2010 (d) None of the above. 27. On 10.05.09 Ramesh draws a bill on Suresh for 4 months for Rs. 4,000. 13 September is a public holiday, due date of the bill will be (a) 13 September, 2009 (b) 10 September, 2009 (c) 14 September, 2009 (d) 12 September, 2009 28. Rs.40,000 spent by a factory in overhauling of its existing plant & machinaries. It has enhanced its working life by five years. The aforesaid expenditure is (a) Capital expenditure (b) Revenue expenditure (c) Deferred revenue expenditure (d) None of the above 29. If repairs cost is Rs. 30,000 white wash expenses are Rs. 5,000, cost & extension of building is Rs. 3,00,000 and cost of improvement in electrical wiring system is Rs. 30,000 the amount of revenue expenses will be (a) Rs. 35,000 (b) Rs. 65,000 (c) Rs. 3,65,000 (d) Rs. 3,35,000 30. Rajesh returned goods amounting Rs. 5,200 to us but was recorded Rs. 2,500 in his account. In the rectifying entry. Rajesh A/c will be debited with (a) Rs. 2,500 (b) Rs. 2,700 (c) Rs. 7,700 (d) Rs. 5,200 112 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 31. A Bill Receivable of Rs. 4,000 was dishonoured and credited as Rs. 400. The error will be rectified by (a) Debiting Bill by Rs. 3,600 (b) Debiting Bill Rs. 4,400 (c) Crediting Bill Rs. 3,600 (d) Crediting Bill Rs. 4,400 32. Opening Stock = Closing Stock + ? – Purchases (a) Cost of goods sold (b) Gross profit (c) Sales (d) Net Profit 33. The following information pertaining to a firm as on 31 December 2009 Opening Stock Rs. 20,000 Purchases Rs. 1,50,000 Sales Rs. 1,40,000 Gross profit on sales has been 25%. The cost of goods sold during the year will be (a) Rs. 12,000 (b) Rs. 1,75,000 (c) Rs. 1,40,000 (d) Rs. 1,05,000 34. Original cost of an asset was Rs. 3,00,000. Salvage value was 40,000. Depreciation for 3rd year @15% p.a. under W.D.V method will be (a) Rs. 38,250 (b) Rs. 45,000 (c) Rs. 1,35,000 (d) Rs. 32,512.50 35. What would be the amount of sales when opening stock is Rs. 20,000. Purchase Rs. 50,000 wages Rs. 10,000. Closing stock Rs. 20,000 and gross profit is 1/7th of sales. (a) Rs. 70,000 (b) Rs. 50,000 (c) Rs. 60,000 (d) None of the above 36. X sends out goods costing Rs. 2,00,000 to Y. Consignor expenses Rs. 5,000. Consignee’s expenses in relation to sales Rs. 3,000. 4/5th of the goods were sold at 20% above cost. The profit on consignment will be (a) Rs. 20,000 (b) Rs. 30,000 (c) Rs. 25,000 (d) Rs. 40,000 37. R & S entered into a joint venture. They purchased a piece of land for Rs. 60,000 and sold it for Rs 80,000 in 2009. Originally R had contributed Rs. 40,000 and S Rs 20,000. What will be the profit on venture? (a) Rs. 25,000 (b) Rs. 20,000 (c) Rs. 60,000 (d) Rs. 80,000 Common Proficiency Test (CPT) Volume - II 113 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 38. Following trading results are available in respect of the business carried on by afirm 2006 – Loss Rs. 20,000 2008 – Profit Rs. 30,000 2007 – Loss Rs. 5,000 2009 – Profit Rs. 15,000 The value of goodwill on the basis of 3 years purchases of average profit of the business will be (a) Rs. 20,000 (b) Rs. 14,000 (c) Rs. 15,000 (d) Rs. 70,000 39. M and N share profit in the ratio of 2:1. O has been admitted with 1/4th share in profit. The new profit sharing ratio of partner will be (a) 1:2:1 (b) 1:1:2 (c) 2:1:1 (d) None of the above 40. X, Y and Z are partner sharing profit and losses in the ratio of 5:3:2. Z retires and goodwill of the firm is to be valued at Rs. 50,000 find the amount payable to retiring partner on account of goodwill. (a) Rs. 15,000 (b) Rs. 10,000 (c) Rs. 25,000 (d) None of the above 41. Jain & Co. forfeited 50 shares of Rs. 10 each. Rs.8 called up on which application money of Rs. 5 per share was paid. The entry for forfeiture is. (a) Share Capital A/c Dr. 400 To Share premium A/c 150 To share allotment A/c 250 (b) Share Capital A/c Dr. 400 To Share forfeiture 250 To Share allotment A/c 150 (c) Share Capital A/c Dr. 500 To Share forfeiture A/c 250 To Share allotment A/c 250 (d) None of the above. 42. Preference shares of Rs. 3,00,000 are redeemed at par for which fresh equity shares of Rs. 1,20,000 are issued at 20% premium. What amount should be transferred to capital redemption reserve account? (a) Rs. 60,000 (b) Rs. 24,000 (c) Rs. 36,000 (d) Rs. 1,80,000 43. Goodwill of a firm of Sanju and Manju is valued at Rs. 45,000. It is appearing in the books at Rs. 15,000. Anju is admitted for 1/4th share. The amount of goodwill, which she is supposed to bring will be (a) Rs. 11,250 (b) Rs. 15,000 (c) Rs. 7,500 (d) None of the above 114 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 44. X Ltd. issued 5,000 10% debentures of Rs. 125 each at a discount of 5% payable at a premium of 5% at the end of 5 years. The loss on issue of debentures will be (a) Rs. 62,500 (b) Rs. 12,500 (c) Rs. 37,500 (d) Rs. 25,000 45. In case a trial balance does not agree the difference is put to (a) Trading A/c (b) Profit & Loss A/c (c) Capital A/c (d) Suspense A/c 46. The capital of O and P are Rs. 60,000 and Rs. 20,000 respectively with the profit sharing ratio 3:1. They decide to change the ratio to 5:3. On the date of change goodwill is valued at Rs. 75,000. Goodwill account will not appear in the books. Journal entry to give the above effect will be (a) Goodwill A/c Dr. 75,000 To O’s Capital A/c 56,250 To P’s Capital A/c 18,750 (b) Goodwill A/c Dr. 75,000 To O’s Capital A/c 46,875 To P’s Capital A/c 28,125 (c) P’s Capital A/c Dr. 9,375 To O’s Capital A/c 9,375 (d) None of the above 47. In the absence of any agreement, it is presumed that the new partner acquires. his share in profit from the old partner in the (a) Old ratio (b) Gaining ratio (c) New ratio (d) Sacrificing ratio 48. Purchased goods from Maya for Rs. 2,400 but was recorded as Rs. 4,200 to the debit of Maya. In the rectifying entry Maya’s A/c will be credited with (a) Rs. 4,800 (b) Rs. 6,600 (c) Rs. 8,400 (d) None of the above 49. Bank reconciliation statement is prepared with the balance of (a) Pass book (b) Cash book (c) Either (a) or (b) (d) None of the above 50. If a bill is drawn on 28th January 2010 for 1 month, it will mature on (a) 28 February 2010 (b) 3rd March 2010 (c) 2nd March 2010 (d) None of the above Common Proficiency Test (CPT) Volume - II 115 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 51. A machinery was purchased for Rs. 50,000 on which depreciation was provided @ 15% by SLM method. The book value of the asset at the end of 2nd year will be (a) Rs. 35,000 (b) Rs. 36,125 (c) Rs. 42,500 (d) Rs. 50,000 52. Goods purchased for Rs. 80,000; sales Rs. 60,000; Margin 20% on cost; closing stock will be (a) Rs. 40,000 (b) Rs. 10,000 (c) Rs. 2,000 (d) Rs. 30,000 53. The first Accounting Standard (AS-1) issued by the Institute of Chartered Accountants of India is on (a) Disclosure of Accounting Policies (b) Valuation of Inventories (c) Revenue Recognition (d) Change in Financial Position of an Entity 54. A machinery purchased for Rs. 30,000 had its book value Rs. 18,000 was sold for Rs. 40,000 the capital profit will be (a) Rs. 12,000 (b) Rs. 10,000 (c) Rs. 48,000 (d) Rs. 58,000 55. In case opening stock was Rs. 15,000, purchases Rs. 25,000, factory lighting Rs. 5,000 and closing stock Rs. 10,000. Then, the cost of goods sold had been (a) Rs. 30,000 (b) Rs. 45,000 (c) Rs. 35,000 (d) Rs. 25,000 56. A machinery purchased for Rs. 40,000 and paid Rs. 5,000 on its installation. The useful life of plant is 5 years and its estimated scrap value is Rs. 5,000. Annual depreciation under the fixed instalment method would be (a) Rs. 6,000 (b) Rs. 11,000 (c) Rs. 8,000 (d) Rs. 9,000 57. Preference shares amounting Rs. 50,000 are redeemed at a premium of 5% by issue of equity shares amounting to Rs. 25,000 at a premium of 10%. The amount to be transferred to capital redemption reserve (a) Rs. 75,000 (b) Rs. 25,000 (c) Rs. 10,000 (d) Rs. 50,000 58. Account receivable is (a) A Liability (b) An Asset (c) An Expense (d) A Revenue 116 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 59. If total assets of the firm is Rs. 2,00,000; outside liabilities is Rs. 1,60,000, then capital contributed by the owner will be (a) Rs. 60,000 (b) Rs 40,000 (c) Rs. 3,60,000 (d) None of the above 60. Sales to Ranjan Rs. 600 was not recorded in the book. This will affect (a) Ranjan A/c (b) Sales A/c (c) Neither (a) nor (b) (d) Both (a) and (b) SECTION – B : MERCANTILE LAWS (40 MARKS) 61. According to the Indian Contract Act 1872, an agreement in restraint of trade is valid if relates to (a) Sale of goodwill (b) Mutual agreement (c) Business contingency (d) All of above 62. An agreement to do an impossible act itself is (a) Valid (b) Void (c) Voidable (d) Illegal 63. Which of the following agreements are valid? (a) Wagering agreements (b) Agreement contingent upon impossible events (c) Uncertain agreements (d) None of the above 64. Which of these are opposed to public policy? (a) Restraint of marriage (b) Restraint of personal liberty (c) Interference with course of Institute (d) All of the above 65. An illegal agreement is void. However, a collateral transaction to an illegal agreement e.g. money borrowed to carry on an illegal business, is (a) Void (b) Valid (c) Voidable (d) Uncertain 66. Where the parties to the contract mutually agree to cancel the contract, it is called- (a) Remission (b) Rescission (c) Novation (d) Alteration Common Proficiency Test (CPT) Volume - II 117 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 67. A contingent contract to do or not to do anything, if an impossible event happens, is (a) Valid (b) Void (c) Voidable (d) Illegal 68. In case of joint promise, a promisee can compel (a) All the joint promisors to perform (b) Any one of them to perform (c) Some of them to perform (d) Any of the above 69. Assignment of contract may be by (a) Operations of law (b) The act of parties (c) (a) or (b) (d) None of the above 70. Contract to marry a person shall be performed by (a) A third person (b) Promisor himself (c) Representative of the promisor (d) None of the above 71. The right of joint promisees to demand performance is (a) Joint (b) Several (c) Joint or several (d) Joint and several 72. Quasi contractual right is a right, which is available against (a) The entire world (b) Any person (c) A particular person (d) Both (b) & (c) 73. In case of future goods (a) Only agreement to sell is possible (b) Both sale and agreement to sell is possible (c) They are owned by the seller at the time of sale (d) None of the above 74. Partnership is the_____between persons who have agreed to share the profits of a business (a) Business (b) Relation (c) Trade (d) Venture 75. A partner who has actively engaged in the conduct of partnership is called (a) Nominal partner (b) Working partner (c) Sleeping partner (d) Dormant partner 118 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 76. A firm is the name of (a) The partners (b) The minors in the firm (c) The business under which the firm carries on business (d) The collective name under which partners carry on business. 77. The ratio in which partners share profits and losses are (a) Based on agreement (b) Based on the contract Act (c) Equal (d) Based on the decision of the registrar of firms. 78. The Partnership Act extends to the whole of India except the state of (a) Uttar Pradesh (b) Maharashtra (c) Jammu and Kashmir (d) Goa 79. A contract can be discharged? (a) By operation of law (b) By lapse of time (c) By performance (d) By all of the above 80. On substitution of a new contract, the old contract is discharged is known as ______. (a) Rescission (b) Novation (c) Alteration of contract (d) Waiver 81. ________ means termination of contract. (a) Rescission (b) Injunction (c) Specific performance (d) Quantum meruit 82. Where there is breach of contract, special damages are awarded only when _________. (a) There are special circumstances (b) There is special loss (c) There is notice of the likely special loss (d) In all cases 83. Passing of property implies passing of (a) Ownership (b) Possession (c) Ownership & Possession (d) Benefit & Possession 84. The goods which have not been identified and agreed upon at the time of contract of sale are _________ goods. (a) Contingent (b) Future (c) Unascertained (d) Unappropriated Common Proficiency Test (CPT) Volume - II 119 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 85. An auctioneer is an agent governed by the (a) Law of agency (b) Law of partnership (c) Law of limitaiton (d) Law of mutual consent 86. A Quasi – Contract is not a _________ contract. (a) Real (b) Valid (c) Real and valid (d) Voidable 87. A contract implied by law is known as __________. (a) Contingent Contract (b) Alternation (c) Quasi Contract (d) Implied contract 88. Implied contract even if not is writing or express words, is perfectly __________ if other conditions are satisfied. (a) Void (b) Valid (c) Voidable (d) Illegal 89. The implied condition as to quality or fitness __________ where the buyer contracts for a specified article under its patent or other trade name not relying on the spill and judgment of the seller. (a) Is presumed (b) Is applicable (c) Is not applicable (d) Does not exist 90. Partnership by holding out is also known as (a) Sub-partnership (b) Partnership by estoppels (c) Partnership at will (d) None of the above 91. Co-ownership may arise either by ___________. (a) Contract or understanding (b) Status or contract (c) Mutual agency (d) Either (a) or (b) 92. Sharing of profits is __________ evidence of existence of partnership. (a) Collaborative (b) Confirmative (c) Conclusive (d) Not a Conclusive 93. Goods means every kind of immovable property excluding _________. (a) Stock and shares (b) Growing crops, grass (c) Both (a) and (b) (d) Actionable claims and currency money 94. Where the contingency of event merely indicates the mode or manner of performance, the contract is not _________. (a) Valid (b) Void (c) contingent (d) Lawful 120 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 95. The event upon which performance of a contingent contract depends must not depend on the __________ of the promisor. (a) Will (b) Deeds (c) Rules (d) Principles 96. Sale by an Official Receiver/Liquidator of the company or finder of goods is (a) Valid (b) Void (c) Voidable (d) Unenforceable 97. Under Sec. 10 of the partnership Act, every partner shall indemnity the firm for loss caused to it by his __________. (a) Fraud (b) Error (c) Mistake (d) Misrepresentation 98. In a contract of sale of goods, the seller can sell only such goods of which he is the (a) Beneficial owner (b) Absolute owner (c) Quasi owner (d) All of the above 99. A invites ‘B’ to stay with him during winter vacation ‘B’ accepts the invitation and informs ‘A’ accordingly when ‘B’ reaches ‘A’ s house he finds it locked and he has to stay in a hotel. Can ‘B’ claim damages from A. (a) B can claim damages (b) B cannot claim any damages (c) B can file a suit against A (d) None of these 100. ‘A’ and ‘B’, co-owners of a house, let it to a paying guest. They divide the net rents between them. Are they partners? (a) A and B are partners (b) A and B are not partners (c) A and B are half partners (d) None of these SECTION – C : GENERAL ECONOMICS (50 MARKS) 101. Who said “Economics is a science of dynamic growth and development”? (a) J. B. Say (b) Paul A. Samuelson (c) Alfred Marshal (d) Robbins 102 Who Said “Economics should be neutral between ends”? (a) J. B. Say (b) Alfred Marshall (c) Robbins (d) A. C. Pigou 103 If marginal opportunity cost is falling, the PPF would be: (a) Straight line (b) Concave (c) Backward bending (d) Convex Common Proficiency Test (CPT) Volume - II 121 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 104 Which of the following would result in a rightward shift of PPF? (a) An increase in investment in speculative activities by diverting funds from other productive activities. (b) A reduction in unemployment rate (c) The discovery of new gold reserves in the country (d) Increase in number of people taking leisure activities by taking early retirement from their jobs 105 Calculate Income-elasticity for a household when the income of this household rises by 5% and the demand for buttons does not change at all. (a) Infinity (b) 1 (c) 5 (d) Zero 106 If the goods are perfect substitutes for each other then cross elasticity is (a) Infinite (b) One (c) Zero (d) None of the above 107 Consumer Surplus is: (a) What a consumer is ready to pay + what he actually pays (b) What a consumer is ready to pay – what he actually pays (c) What he actually pays - what a consumer is ready to pay (d) None of the above 108 Indifference curve is convex to the origin due to: (a) Falling MRS (b) Rising MRS (c) Constant MRS (d) None of the above 109 Which of the following is not included in the stages of capital formation? (a) Savings (b) Mobilisation of Income (c) Mobilisation of Saving (d) Investment 110 Which of the following in correct? (a) Disinvestment and Privatisation are separate (b) Privatisation is a narrower concept as compared to disinvestment (c) Privatisation and Disinvestment mean the same (d) Disinvestment is a narrower concept than privatisation 111 In 1973-74, the maximum marginal rate of individual income tax was as high as: (a) 77.9% (b) 97.7% (c) 50% (d) 90% 122 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 112 SEZ stands far (a) Software Economic Zones (b) Special Economic Zones (c) Special Efficiency Zone (d) Software Efficiency Zone 113 FRBMA, 2003 emphasises on the following except: (a) Revenue-Led Fiscal Consolidation (b) Rationalisation of Tax Regime (c) Improve competitiveness of domestic goods and services in a globalised economic environment (d) Capital – led fiscal consolation 114 Tax Reform Committee was set up in: (a) 1992 (b) 1991 (c) 1994 (d) 2000 115 Vishesh Krishi Upaj Yojana has been started to: (a) Promote agricultural production (b) Promote agricultural imports (c) Promote agricultural exports (d) None of the above 116 A minimum capital required by the companies seeking entry into defense production: (a) Rs 100 crore (b) Rs 10 crore (c) Rs 200 crore (d) Rs 50 crore 117 Economic Reforms in India were started in the year: (a) 1990 (b) 1991 (c) 1992 (d) 1993 118 Which of the following statement is correct? (a) In 1991 foreign exchange reserves were just sufficient to finance imports of 3 days. (b) In 1991 foreign exchange reserves were just sufficient to finance imports of 3 weeks. (c) In 1991 foreign exchange reserves were just sufficient to finance imports of 3 months (d) In 1991 foreign exchange reserves were just sufficient to finance oil import bill of 3 weeks. 119 DFEC stands far: (a) Duty Freedom Export Credit (b) Duty Free Export Credit (c) Direct Foreign Exchange Control (d) Duty Free Exchange Credit 120 FIEO Stands for (a) Federation of Indian Export organisation (b) Federation of Export organisation (c) Foreign Import Export organisation (d) Financial Import Export organisation Common Proficiency Test (CPT) Volume - II 123 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 121 Rupee was devalued in: (a) July 1990 (b) July 1992 (c) July 1991 (d) July 1994 122 At present there are only _____________ industries for which licensing in compulsory (a) 6 (b) 10 (c) 18 (d) 9 123 At present _____________ industries are reserved for the public sector (a) 3 (b) 5 (c) 7 (d) 8 124 If any country needs funds for long term development of the nation, then the country should approach___________. (a) World Bank (b) UNO (c) IMF (d) WTO 125 Dematerialisation of TDS certificates will be made effective from: (a) 1-1-2008 (b) 1-6-2007 (c) 1-4-2008 (d) 1-4-2009 126 100% FDI is allowed in (a) Insurance (b) Banking (c) Hotels and Tourism (d) Defence 127 Which of the following is not the suggestion for improving education system? (a) Education should be made job oriented (b) Vocational education should be discouraged (c) The standard of education should be raised (d) Expansion of education should be carefully planned since it is costly 128 NIXI stands for: (a) National Internet Exchange of India (b) New Information Exchange of India (c) National Information Exchange of India (d) Nutrition Information Exchange of India 129 NHPC stand for: (a) Nuclear Hydroelectric Power Corporation (b) National Hydro Power Corporation (c) National Hydro Public Corporation (d) National Hydroelectric Power Corporation 124 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 130 Non-Commercial traditional sources of energy are (a) Fire wood (b) Dung Cakes (c) Agricultural wastes (d) All of the above 131 Three steel plants in Bhilai, Raurkela and Durgapur were set up in the: (a) First Plan (b) Second Plan (c) Third Plan (d) Fourth Plan 132 Which of the following statements in correct? (a) Large number of industries face under utilization of production capacity (b) The incremental capital output ratio has been falling over the planning period (c) Industrial Development is balanced in all regions (d) None of the above 133 Nearly _______ % of labour force is engaged in service sector (a) 20-25% (b) 25-30% (c) 30-35% (d) 35-40% 134 India has the ________ largest scientific and technical manpower in the world (a) Third (b) Second (c) Fifth (d) Ninth 135 Small units exist in India because: (a) They are labour intensive and India is a labour surplus economy (b) They are capital intensive and India is a capital surplus economy (c) They offer method of inequitable distribution of income and wealth (d) None of the above 136 CENVAT was introduced in the year: (a) 2001-02 (b) 2000-01 (c) 2002-03 (d) 2004-05 137 India’s debt service ratio is ______ in 2007-08 (a) 11.5% (b) 5.4% (c) 13.5% (d) 10.2% 138 Advalorem duty means duty imposed on the basis of: (a) Percentage of price of the commodity (b) Per unit on the commodity (c) Both (a) and (b) (d) None of the above Common Proficiency Test (CPT) Volume - II 125 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 139 We mainly study the following in Micro Economics : (a) Location of a Industry (b) Study of firms (c) Factor pricing (d) All of the above 140 When we study why saving rates are high or low, we are studying: (a) Macro Economics (b) Micro Economics (c) Both (a) and (b) (d) None of the above 141 When ______________, we know that firms are earning just normal profits (a) AR = MR (b) MC = AC (c) MC = MR (d) AC = AR 142 MC curve cuts ______________ curves at their minimum points. (a) AVC and AC (b) AFC and AVC (c) AC and AFC (d) All the above 143 In perfect competition in the long run there will be___________. (a) Normal Profits (b) Super Normal Profit (c) Less production (d) Cost will be falling 144 Which of the following statements is correct? (a) Monopolist can earn only profits (b) Firms in a perfectly competitive market are price maker (c) Industry in a perfectly competitive market is a price taker (d) AR curve and demand curve are same 145 Soap industry is an example of: (a) Oligopoly (b) Perfect competition (c) Monopolistic competition (d) Monopoly 146 A purely competitive firm’s supply schedule in the short run is determined by: (a) Its average revenue (b) Its marginal revenue (c) Its marginal cost curve (d) Marginal utility for money curve 147 When price is less than average variable cost at the profit maximizing level of output, a firm should: (a) Shut down, since it cannot recover its variable cost (b) Produce where MC = MR, if operating in short run (c) Produce where MC = MR, if operating in long run (d) None of the above 126 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 148 A firm encounters its shut down point when: (a) Average total cost equals price at the profit maximising level of output (b) Average variable cost equals price at the profit maximising level of output (c) Average fixed cost equals price at the profit maximising level of output (d) Marginal cost equals price at the profit maximising level of output 149 In which form of the market structure is the degree of control over the price of its product by a firm is very large? (a) Imperfect competition (b) Monopoly (c) Oligopoly (d) Perfect competition 150 For the Price taking firm: (a) Marginal Revenue is less than price (b) Marginal revenue is greater than price (c) The relationship between marginal revenue and price is not clear (d) Marginal revenue is equal to average revenue SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) 151. A fraction is such that if the numerator is multiplied by 3 and the denominator is reduced by 3, we get 18/11, but if the numerator is increased by 8 and the denominator is doubled, we get 2/5. Then the fraction is (a) 13/25 (b) 17/25 (c) 12/25 (d) None of these 152. When a number is added to another number the total becomes 150 percent of the second number. What is the ratio between the first and the second number. (a) 1:2 (b) 1:3 (c) 2:3 (d) None of these 153. The sum of three consecutive even numbers is 15 less than three–fourth of 60. What is middle number? (a) 15 (b) 10 (c) 12 (d) None of these 154. Five years ago, I was thrice as old as my son and ten years later I shall be twice as old as my son. How old are we now ? (a) 50, 20 (b) 45, 15 (c) 65, 25 (d) None of these Common Proficiency Test (CPT) Volume - II 127 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 155. The compound ratio of 4: 3, 9:13, 26 : 5 and 2 : 15 is 4 16 (a) (b) 25 25 18 (c) (d) None of these 27 156. If 56 P : 54 P = 30800 : 1 then the value of r is r+6 r+3 (a) 42 (b) 41 (c) 45 (d) None of these 157. When John arrives in New York, he has eight shops to see, but he has times only to visit six of them. In how many different ways can he arrange his schedule in New York? (a) 20000 (b) 20160 (c) 21160 (d) None of these 158. There are 6 students of whom 2 are Indians, 2 Americans, and the remaining 2 are Russians. They have to stand in a row for a photograph so that the two Indians are together, the two Americans are together and so also the two Russians,. Find the number of ways in which they can do so. (a) 40 (b) 42 (c) 48 (d) None of these 159. Find the number of different poker hands in a pack of 52 playing cards. (a) 2598960 (b) 1506210 (d) 5298216 (d) None of these 160. Sum of the digits of a two digits number is 9. The number obtained by reversing the order of digits of the given number exceeds the given number by 27. Then the given number is (a) 30 (b) 36 (c) 40 (d) None of these 9x −3x 161. Evaluate lim x→0 4x −2x log3 ⎛3⎞ (a) (b) log ⎜ ⎟ log2 ⎝2⎠ (c) log 6 (d) None of these 128 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India (5x −1)2 162. Evaluate log (1+x) e (a) log 5 (b) (log 5)2 (c) 2log 5 (d) None of these lim f(x) 163. If f(x) = x + 1; for x < 1 and f(x) = 3 – x2; for x > 1 find x→1 (a) 2 (b) –2 (c) Does not exist (d) None of these 164. If f(x) = x–1; if 1 < x < 2 , f(x) = 2x–3; if 2 < x < 3, then given function is (a) Continuous at x = 2 (b) Discontinuous at x = 2 (c) Cannot say (d) None of these 3x2 +2x+7 165. The points of discontinuity of the function is x2 −3x+2 (a) 1, 2 (b) –1,2 (c) 1, –2 (d) None of these 1 ∫ dx 166. Evaluate xlogx ⎛ x2 ⎞ log ⎜log ⎟+c (a) (b) log (log x ) + c ⎝ 2 ⎠ (c) log (log x2 ) + c (d) None of these ∫ 167. Evaluate log x dx 10 (a) log (x log x – x) + c (b) log e(x log x – x) + c 10 10 (c) log e(x log x – 10) + c (d) None of these 10 4ex +6e−x ∫ 168. Evaluate dx 9ex −4e−x 3 35 ( ) (a) − loge2x + log 9e2x −4 +c 4 36 9 36 ( ) (b) − logex + log 4ex +6e −x +c 8 35 Common Proficiency Test (CPT) Volume - II 129 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 3 35 ( ) (c) − logex + log 9ex −4e−x +c 2 36 (d) None of these dx ∫ 169. Evaluate x2 −a2 ( ) (a) log x− x2 −a2 + c ( ) (b) log x2 −a2 + c ( ) (c) log x+ x2 −a2 + c (d) None of these 170. Evaluate ∫ (x -3) x2 −6x+100 dx (a) 1( x2 −6x+100 ) 3/2 +c (b) 1( x3 −6x2 +100 ) 2/3 +c 3 6 (c) 1( x3 −6x2 +100 ) 2/3 +c (d) None of these 3 171. In how many different ways can I invite one or more of my 6 friends? (a) 63 (b) 64 (c) 60 (d) None of these 172. In an examination a candidate has to pass in each of the 4 papers. In how many different ways can be failed? (a) 14 (b) 16 (c) 15 (d) None of these 173. In an election the number of candidates is one more than the number of members to be elected. If a voter can vote in 254 different ways; find the number of candidates. (a) 8 (b) 10 (c) 7 (d) None of these 130 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 174. From 17 consonants and 5 vowels, how many words of 3 consonants and 2 vowels can be made if all the letters are different? (a) 810000 (b) 816000 (c) 815000 (d) None of these 175. A boat is to be manned by 8 men of which 3 can row only one side and 2 only on the other. In how many ways can the crew be arranged? (a) 1720 (b) 1700 (c) 1728 (d) None of these 176. Earnings from a new machine after taxes (cost savings or profits) are expected to be Rs. 34,000 per year. The machine costs Rs. 1,50,000 and after 5 years, it has no resale value. A loan can be made for this amount payable in five equal annual instalments at 5% p.a. on the unpaid balance of the loan. Should management buy the machine? (a) It should not be purchased (b) It should be purchased (c) Cannot determined (d) None of these 177. If simple interest on Rs. 2,000 increases by Rs. 40, when the time increases by 4 years. Find the rate percent per annum. (a) 1% (b) 0.5% (c) 2% (d) None of these 178. A man deposits Rs. 2,000 in a bank at 4% per annum and Rs. 3,000 in UTI at 14% per annum. Find the rate of interest for the whole sum. (a) 10% (b) 5% (c) 15% (d) None of these 179. If the simple interest on Rs. 1,200 be more the interest on Rs. 1,000 by Rs. 30 in 3 years. Find the rate percent per annum. (a) 7% (b) 6% (c) 5% (d) None of these 180. If Simple Interest on Rs. 2,000 increases by Rs. 40, when the rate percent increases by 2% per annum. Find the time (in years)? (a) 1 (b) 2 (c) 1½ (d) None of these 181. The average of 2 numbers is 20 and their Standard Deviation is 5. Find the two numbers. (a) 15, 25 (b) 30, 40 (c) 10, 15 (d) None of these Common Proficiency Test (CPT) Volume - II 131 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 182. In series of 5 observations, the values of mean and variance are 4.4. and 8.24 respectively. If three observations are 1, 2 and 6 then the value of other two observations are (a) 3, 2 (b) 4, 9 (c) 10, 4 (d) None of these 183. For individual series, the rank of the median is ⎛ N+1⎞th ⎛N+1⎞th (a) ⎜ ⎟ term (b) ⎜ ⎟ term ⎝ 4 ⎠ ⎝ 2 ⎠ 3 ( N+1 )th (c) term (d) None of these 2 184. Find the rank of the Median in the given series 3, 2, 4, 6, 5, 7 (a) 3.5 (b) 4 (c) 4.5 (d) None of these 185. The relation between two variables is 2x + 3y – 10 = 0. If mean of y is 50, then mean of x is (a) 20 (b) 30 (c) 25 (d) None of these 186. The two regression lines are 5x = 22 + y & 64x = 24 + 45y. Find the Standard Deviation of y from the given information. (a) 4 (b) 5 (c) Cannot determined (d) None of these 187. Which one of the following is a true statement? (a) 1/2 (b + b ) = r (b) 1/2 (b + b ) < r xy yx xy yx (c) 1/2 (b + b ) > r (d) None of these yx yx 188. The correlation between two variables x and y is found to be 0.4. What is the correlation between 2x and (–y) ? (a) 0.4 (b) –0.4 (c) 0.6 (d) None of these 189. Find the coefficient of correlation between the following set of observation: X: 69 85 Y: 70 87 (a) 1 (b) -1 (c) 0 (d) None of these 132 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 190. Find the correlation coefficient between the following set of observation. X: 102 109 Y: 50 48 (a) 1 (b) –1 (c) 0 (d) None of these 191. The normal curve is …………. Shaped. (a) Bell (b) U–Shaped (c) J–shaped (d) None of these 192. The total area of the normal curve or for that any probability curve is taken to be (a) 1 (b) 2 (c) 0 (d) None of these 193. The two tails of the normal curve extend infinitely on both sides of the curve…………. The horizontal axis. (a) touch (b) never touch (c) either (a) or (b) (d) None of these 194. For a normal distribution with mean 2 and variance 9, find the value of x such that the probability of the interval (2, x) is 0.4115. (a) 7.05 (b) 6.05 (c) 8.05 (d) None of these 195. For a normal distribution, the first moment about origin is 35 and the second moment about 35 is 10. Find the first four central moments. (a) 5, 10, 0, 100 (b) 10, 6, 0, 200 (c) 0, 10, 0, 300 (d) None of these 196. The most commonly used confidence limit is (a) 90% (b) 99% (c) 95% (d) 99.73% 197. Sample mean is a (a) Parameter (b) Statistic (c) Both (d) None of these 198. Deliberate sampling is a (a) Random sampling (b) Non – random sampling (c) Both (a) and (b) (d) None of these Common Proficiency Test (CPT) Volume - II 133 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 5 199. Stratified random sampling is used for ……….. Population. (a) Homogeneous (b) Non–homogeneous (c) Either (a) or (b) (d) None of these 200. Random sampling is also called lottery sampling. (a) False (b) True (c) Both (d) None of these ❖❖❖ 134 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India BOARD OF STUDIES THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA COMMON PROFICIENCY TEST Model Test Paper – BOS/CPT – 6 Time : 4 hours Maximum Marks : 200 The test is divided into four sections. Questions 1 to 200 have only one correct answer and carry + 1 mark for each correct answer and – 0.25 mark for each wrong answer. SECTION – A : FUNDAMENTALS OF ACCOUNTING (60 MARKS) 1. What is the important object of accounting? (a) To maintain records (b) Depiction of financial position (c) Make information available to various groups and users. (d) All of the three 2. A collateral security of 8,000 10% Debentures of Rs.10 each has been issued at a premium of 25% to A in lieu of a loan of Rs.1,00,000 taken on 1st January, 2006. At the end of the year, interest was paid on: (a) The nominal value of debentures (b) The amount of loan outstanding (c) Difference of loan amount and nominal value of debentures (d) None of the above 3. Income is measured on the basis of (a) Matching concept (b) Consistency concept (c) Cost concept (d) None of the above 4. Which of the following is long-term liability? (a) Outstanding Expenses (b) Share Capital (c) Debentures (d) All of the above C13o5mmon Proficiency Test (CPT) Volume - II 135 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 5. Drawing is a type of (a) Expenses (b) Withdrawal of Capital (c) Income (d) None of the above 6. The most common method of supplementing the capital available to a company is (a) To issue debentures (b) To issue preference shares (c) To issue equity shares (d) None of the above 7. Which of the following is not an Intangible Asset? (a) Investment (b) Goodwill (c) Copyright (d) Patents rights 8. The Enterprise is liable to the owner for capital investment made by the owner as per (a) Entity concept (b) Money measurement concept (c) Accrual concept (d) Going concern concept 9. Which of the following is not a valuation Principle? (a) Market Value (b) Present Value (c) Historical Value (d) All of the above 10. Purchase of office equipment on credit will lead to (a) Decrease in Capital (b) Decrease in Liability (c) Increase in Assets (d) All of the above 11. Decrease in the amount of Creditors result in (a) Decrease in Cash (b) Increase in Liability (c) Increase in Cash (d) None of the three 12. Trial Balance is a (a) Final Account (b) Statement of day books (c) Subsidiary book (d) None of the above 13. When overdraft as per Cash Book is the starting point then wrong debit in pass book will be (a) Deducted from the Bank Reconciliation Statement (b) No effect in the Bank Reconciliation Statement (c) Added in the Bank Reconciliation Statement (d) None of the three 14. Profit is a part of (a) Income (b) Owner’s Capital (c) Assets (d) All of the above 136 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 15. Journal is books of (a) All cash transactions only (b) All credit transactions only (c) Secondary entry (d) Original entry 16. Balance of Petty Cash Book is posted to ledger (a) In the Bank a/c (b) In the Cash a/c (c) Nowhere (d) Both (a) and (b) 17. Petty Cash is used for payment of (a) Salaries & wages of the staff (b) For purchase of assets (c) Small expenses relating to postages and conveyance etc. (d) All of the above 18. When a cheque received is returned dishonoured, it is recorded on (a) Bank column on the Debit side (b) Bank column on the Credit side (c) Cash column on the Credit side (d) None of the above 19. Promissory note is prepared by (a) Drawer (b) Endorsee (c) Drawee (d) All of the above 20. Which of the following instrument is not a negotiable instrument (a) Crossed cheque (b) Bill of exchange (c) Promissory note (d) Bearer cheque 21. Inventories are valued at lower of cost or net reliable value by applying the principle of (a) Conservatism (b) Consistency (c) Materiality (d) Disclosure 22. Arti places an order to Anju for supply of certain goods yet to be manufactured. On receipt of order, Anju purchases raw materials, employs workers, produced the goods and delivered them to Arti. In this case sale will be presumed to have been made at the time of (a) Production of goods (b) Delivery of goods (c) Purchase of material (d) None of the above 23. Ratan deposited a cheque on 25 January, 2010 for a sum of Rs. 20,000. The cheque was collected on 2 February, 2010. If the bank balance as per passbook as on 31 January, 2010 is Rs. 60,000; balance as per cash book will be (a) Rs. 60,000 (b) Rs. 40,000 (c) Rs. 70,000 (d) Rs. 80,000 Common Proficiency Test (CPT) Volume - II 137 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 24. The company charge interest on call in arrear at (a) 5% (b) 10% (c) 15% (d) 20% 25. The maximum amount of capital that a company can raise is called (a) Authorised capital (b) Subscribed capital (c) Issued capital (d) Called-up capital 26. Manish & Co. Ltd. forfeited 100 shares of Rs. 10 each, Rs. 8 called up, Rs. 4 paid on application; the amount to be forfeited is (a) Rs. 800 (b) Rs. 400 (c) Rs. 600 (d) Rs. 200 27. In the absence of any agreement, the partners are entitled to interest on the loan advanced to the firm at the rate of (a) 5% (b) 7% (c) 6% (d) 8% 28. Calculate gross profit if rate of gross profit is 25% on sales and cost of goods are Rs.1,80,000 (a) Rs. 60,000 (b) Rs. 36,000 (c) Rs. 45,000 (d) Rs. 30,000 29. Cost of motor Rs. 2,00,000, scrap value Rs. 20,000. Useful life 4 years. What will be amount of depreciation according to sum of years digit method in the first year? (a) Rs. 72,000 (b) Rs. 1,08,000 (c) Rs. 80,000 (d) Rs. 1,20,000 30. An asset has a useful life of 4 years. If it is depreciated by diminishing balance method. Its book value at the end of 4 years is 24% of its original cost. Hence the rate of depreciation applied is (a) 20% (b) 30% (c) 25% (d) 35% 31. Valuation of inventory is dealt within (a) AS-2 (b) AS-3 (c) AS-4 (d) AS-5 32. Consider the following items (1) Prepaid Salary (2) Accrued Interest (receivable) (3) Loan (4) Bank overdraft Current Liability would include (a) 1,2,3,4 (b) 2,3,4 (c) 4,3,1 (d) 3,4, 138 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 33. B’s trial balance contains the following information- Make provision at the end of the year Rs. 10,000 Provision for bad debts at the beginning of the year Rs. 4,000 Bad Debts Rs. 6,000 The amount to be debited to Profit & Loss A/c (a) Rs. 20,000 (b) Rs. 8,000 (c) Rs. 12,000 (d) NIL 34. A trial balance at 31st March contains the following information: 15% Loan Rs. 30,000; Interest paid Rs. 3,000 ; Interest debited to the P & L A/c is (a) Rs. 1,500 (b) Rs. 4,500 (c) Rs. 6,000 (d) Nil 35. The opening stock is overstated by Rs. 10,000 and closing stock is understated by Rs. 15,000. The impact of these on net profit for the current year is (a) Rs. 5,000 overstated (b) Rs. 25,000 overstated (c) Rs. 25,000 understated (d) Rs. 5,000 understated 36. X and Y entered into a joint venture sharing profits and losses equally. X provides goods from his stock Rs. 20,000. He pays expenses amounting to Rs. 2,000. Y incurs further expenses on carriage Rs. 3,000. He received cash for sales Rs. 35,000. He also takes over goods to the value of Rs. 5,000. What will be the amount to be remitted by Y to X? (a) Rs. 29,500 (b) Rs. 35,000 (c) Rs. 7,500 (d) Rs. 22,000 37. Ram and Shyam entered into a Joint venture for equal profits. Ram purchases goods costing Rs. 70,000. Shyam sold goods costing Rs. 60,000 at Rs. 80,000. Balance goods were taken over by Ram at same gross profit percentage as in case of sale. The value of goods taken over will be (a) Rs. 10,000 (b) Rs. 13,333 (c) Rs. 3,333 (d) Rs. 23,333 38. Guarantee given to a partner Mohan by the other partner Suresh and Mahesh means (a) In case of Loss or insufficient profit ‘Mohan’ will withdraw the minimum guaranteed amount (b) In case of Loss ‘Mohan’ will not contribute towards that loss (c) Even in case of sufficient profit ‘Mohan’ will receive only the minimum guaranteed amount (d) None of the above Common Proficiency Test (CPT) Volume - II 139 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 39. Naresh is drawing Rs. 2,000 per month at the end of the month. If the rate of interest is 10% p.a. the total interest chargeable from him in the accounting year will be (a) Rs. 2,400 (b) Rs. 1,200 (c) Rs. 1,100 (d) None of the above 40. In the absence of any agreement, partners are entitled to (a) Share Profit in capital ratio (b) Interest on capital (c) Salary on capital (d) Interest on loans and advances gain to the firm 41. Interest on capital will be paid to the partners if provided for in the agreement but only from (a) Goodwill (b) Current profit (c) Reserves & Surplus (d) Accumulated profit 42. Sita and Gita are partners sharing ratio of 3:2 (Sita’s capital Rs. 6,000 and Gita’s capital Rs. 3,000). They admitted Rita for 1/5th share of profit . How much Rita should bring toward her capital? (a) Rs 2,250 (b) Rs. 3,000 (c) Rs. 1,800 (d) Rs. 6,000 43. As per table A of the companies Act, 1956, a company pays interest on call in advance at the rate of (a) 4% (b) 5% (c) 6% (d) 7% 44. As per table A of the companies Act 1956, a Company can charge interest on call in arrears at the rate of (a) 5% (b) 6% (c) 7% (d) 8% 45. A share of Rs. 200 each issued at discount of 10% is forfeited for non-payment of final call @ Rs. 50 per share. The maximum loss it can bear in the re-issue of shares will be (a) Rs. 200 (b) Rs. 50 (c) Rs. 20 (d) Rs. 130 46. If on a share of Rs. 50, only Rs. 40 has been called and the company has received Rs. 30 till date. The capital account should be credited with (a) Rs. 50 (b) Rs. 30 (c) Rs. 40 (d) Rs. 20 140 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 47. There are 60,000 preference share of Rs. 10 each fully called up. But there are call in arrears of Rs. 4,000 @ Rs. 2 per share. Company can redeem at present (a) 60,000 shares (b) 56,000 shares (c) 58,000 shares (d) None of the above 48. A company cannot issue redeemable preference shares for a period exceeding (a) 10 years (b) 20 years (c) 15 years (d) 25 years 49. Preference shares amounting to Rs. 75,000 are redeemed at a premium of 5% by issue of equity shares amounting to Rs. 40,000 at a premium of 10%. The amount to be transferred to capital redemption reserve account will be (a) Rs. 35,000 (b) Rs. 36,750 (c) Rs. 38,500 (d) Rs. 1,15,000 50. Lal & Co. Ltd. has issued 15% debentures on 1st January, 2008 for Rs. 2,00,000. Interest if payable on 31st March and 30th September every year. Amount of outstanding interest on 31st December, 2009 will be (a) Rs. 7,500 (b) Rs. 30,000 (c) Rs. 15,000 (d) Rs. 22,500 51. Loss on issue of Debentures is generally written off in (a) 10 years (b) 8 years (c) Over the period of redemption (d) 15 years 52. Depreciation is provided on (a) Fixed Assets (b) Current Assets (c) Liquid Assets (d) Fictitious Assets 53. A fixed assets costing Rs. 60,000 has an estimated life of 8 years. At the end of its useful life it can be sold for Rs. 12,000. Using the fixed instalment method, the annual depreciation against profit will be (a) Rs. 9,000 (b) Rs. 6,000 (c) Rs. 12,000 (d) Rs. 10,000 54. At what price goods pending approval or return as on the last day of accounting year are valued (a) Cost price (b) Selling price (c) Average price (d) Latest price 55. Rent paid to Landlord amounting to Rs. 1,000 was credited to rent account with Rs. 10,000. In the rectifying entry rent a/c will be debited with (a) Rs. 11,000 (b) Rs. 1,000 (c) Rs. 9,000 (d) Rs. 10,000 Common Proficiency Test (CPT) Volume - II 141 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 56. Sales to A of Rs. 600 not recorded in the books would affect (a) Sales A/c (b) A’s A/c (c) Cash A/c (d) Sales A/c and A’s A/c 57. X draws an accommodation bill on Y for Rs. 7,000. The proceeds are to be shared by X and Y in the ratio of 3:2. The bill was discounted for Rs. 6,700. Discount borne by X will be (a) Rs. 120 (b) Rs. Nil (c) Rs. 300 (d) Rs. 180 58. When overdraft as per adjusted cash book is the starting point, Bank charges of Rs. 300 recorded twice in the passbook will be (a) Added by Rs. 300 (b) Deducted by Rs. 300 (c) Deducted by Rs. 600 (d) Added by Rs. 600 59. Ram send 50 fans to Shyam costing Rs. 500 per fan to be sold at 20% above cost price. Sales value will be (a) Rs. 25,000 (b) Rs. 20,000 (c) Rs. 30,000 (d) Rs. 31,250 60. If capital at the end of the year is Rs. 40,000; capital introduced during the year Rs. 30,000; Drawings for the year is Rs. 20,000 and Loss of the year is Rs. 60,000 then capital at the beginning of the year was (a) Rs. 90,000 (b) Rs. 80,000 (c) Rs. 70,000 (d) Rs. 10,000 SECTION – B : MERCANTILE LAWS (40 MARKS) 61. Which of the following is correct? When a minor has been supplied with necessaries on credit. (a) Minor is not liable (b) Minor’s estate is liable (c) Minor is personally liable (d) Minor is liable at his option 62. Which one of the following is not a wagering agreement? (a) A lottery (b) An agreement to buy a ticket for a lottery (c) Commercial transaction, the intention of which is not to deliver the goods but only to pay the difference in price (d) A contract of insurance 63. Which of the following persons are not competent to contract? (a) Person of Indian origin (b) Person disqualified by law (c) Minor (d) Person of unsound mind 142 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 64. Which are the following elements that affect the consent of the party? (a) Undue Influence (b) Representation (c) Fraud (d) Coercion 65. Which of the following agreements are void? (a) Agreements the consideration of which is unlawful (b) Agreements made under the unilateral mistake of fact (c) Agreements made under the bilateral mistake of fact (d) Contingent agreement 66. Vindictive Damages are awarded (a) For wrongful dishonour of cheque by a banker (b) For a breach of promise to marry (c) Neither (a) nor (b) (d) Either (a) or (b) 67. In which of the following situations specific performance can be granted? (a) When there is no exact substitute or alternative to the subject matter of the contract (b) When it is probable that compensation in money cannot be got for non-performance (c) (a) or (b) (d) (a) and (b) 68. Which of the following statements is not correct? (a) Ordinary damages are recoverable (b) Special damage are recoverable only if the parties knew about them (c) Remote or indirect damages are not recoverable (d) None of these statements is incorrect 69. An agreement between the bidders not to bid against each other is called (a) Knock –out agreement (b) Auction agreement (c) Partnership agreement (d) By bidder agreement 70. Under the Sale of Goods Act, 1930 a court can award interest (a) At the rate of 12% (b) At the rate of 8% (c) At the rate of 6% (d) At the rate as it thinks fit 71. An auction sale may be (a) Conditional (b) Unconditional (c) voidable (d) None of the above 72. The bidder at an auction sale can withdraw his bid (a) Any time during auction (b) Before fall of hammer (c) Before payment of price (d) None of these Common Proficiency Test (CPT) Volume - II 143 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 73. Transfer of property in goods sent on approval take place when (a) Buyer signifies his approval (b) When he makes the return by goods impossible (c) When he retains goods without signifying approval for unreasonably long time (d) All of the above 74. If the goods are not in existence (not produced at the time of agreement to sell), goods are to be delivered at (a) The place at which they are manufactured or produced (b) The buyer place (c) The sellers place (d) None of the above 75. A buyer is deemed to have accepted the delivery of goods (a) When it is in accordance with the terms of the contract (b) When seller is ready but not willing for giving the possession of the goods (c) When the seller delivers the goods at the place at which they are at time of sale (d) All of the above 76. The property in the goods means the (a) Ownership of goods (b) Possession of goods (c) Custody of goods (d) Both (b) and (c) 77. In case of a hire-purchase the hirer (a) Can pass a goods title to a bona fide purchaser (b) Can choose whether to pass or not to pass the goods (c) Cannot pass a goods title to a bona fide purchaser (d) All of the above 78. Nemo-dat quad non habet means (a) Result to pay the price of goods (b) Nobody can give that the himself does not have (c) Title is not clear (d) Delivery is not possible 79. If the consent is caused by coercion is to be proved by (a) Both the parties (b) The aggrieved party (c) The party causing coercion (d) None of these 80. In case of reciprocal promise, first to do things which are legal are ________ and second to do things which are illegal are ________. (a) Valid, void (b) Void, voidable (c) Valid, illegal (d) Void, void 144 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 81. All agreements in restraint of trade are ________. (a) Void (b) Valid (c) Voidable (d) Illegal 82. Doctrine of restitution does not apply against a ________. (a) Person of unsound mind (b) Fraud (c) Minor (d) None of the above 83. In the absence of a contract to contrary, the ___________ is under a duty to apply for delivery of goods. (a) Seller (b) Buyer (c) Bailee (d) No body 84. Compensation shall not be given for any remote and indirect loss sustained by reason of breach it is ___________. (a) True (b) Partly true (c) False (d) Partly false 85. The partner who does not take part in the conduct of the business is known as _______. (a) Sub-partner (b) Nominal partner (c) Sleeping partner (d) All of the above 86. Contract regarding the sale of unascertained goods is termed as: (a) Contact of sale (b) Not at all a contract of sale (c) An agreement to sell (d) Not at all an agreement to sell 87. When all partners, or all but one partner, of the firm are declared insolvent then ______. (a) Firm is automatically dissolved (b) Firm is also declared insolvent (c) Solvent partner has to repay the debts of the firm (d) None of the above 88. ________ involves selection of goods with the intention of using them in performance of the contract with the mutual consent of the seller and the buyer: (a) Sale (b) Agreement to sell (c) Appropriation of goods (d) Transfer of ownership 89. Premium paid by a partnership firm on the Joint Life Policy (JLP) of partners is (a) Debited to capital accounts of each partner (b) Credited to capital accounts of each partner (c) Debited to the profit & loss account of the firm (d) Credited to the profit & loss account of the firm Common Proficiency Test (CPT) Volume - II 145 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 90. The property in the goods means _________. (a) The possessing of goods (b) Custody of goods (c) Ownership of goods (d) Both (a) and (b) 91. Rights of seller against the buyer personally are called_________. (a) Rights against goods (b) Rights in personam (c) Rghts against appropriation (d) None of the above 92. When buyer repudiates the contract before the date of delivery the seller may _________. (a) Sue for damages (b) Sue for price (c) Rescind the contract (d) None of the above 93. A partnership at will is on __________. (a) Which does not have any deed (b) Which does not have any partner (c) Which does not provide for how long the business will continue (d) Which cannot be dissolved 94. Partner by holding out is_________. (a) A person representing himself to be a partner of the firm by words spoken or written or by him conduct (b) Partner of a firm but the outsiders do not know him as such (c) Partner of a partner of a firm (d) Partner of a firm but does not take part in the business of the firm 95. Active partner is one who _______. (a) Actively takes part in the business of the firm (b) Actively participate in co-curricular activities (c) Actively shares the profits (d) Makes a show of authority 96. The term possession of goods refers __________. (a) Ownership of goods (b) Custody of goods (c) Transfer of goods (d) Property in real estate 97. The time of delivery of goods should be made, unless otherwise specified with in the (a) Business hours of the buyer (b) Reasonable time (c) Business hours of the seller (d) None of the above 98. A pledge, made by the seller, of the goods whose title was transferred to the buyer but not the possession, is_______ (a) Void (b) Valid (c) Illegal (d) Voidable 146 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 99. ‘A’ and ‘B’ were two partners in a firm of sugar dealers. Unknown to ‘B’ ‘A’ supplies at a particular time his own stock of sugar to the firm at market price and makes profit. Decide whether (a) ‘A’ can personally keep this profit (b) ‘A’ cannot keep this profit (c) A can keep half of profit (d) A can keep one fourth of profit 100. ‘A’ polished ‘B’ shoes without being accepted by ‘B’ to do so. ‘B’ does not make any attempt to stop ‘A’ from polishing the shoes. Decide. (a) B is bound to pay (b) B is not bound to pay (c) B is bound to pay damages any incurred by A (d) None of these SECTION – C : GENERAL ECONOMICS (50 MARKS) 101. In Micro Economics we study the Economic behaviour of: (a) An Individual (b) Firm (c) Industry (d) All of the above 102. Which of the following statements is correct? (a) As normative science, Economics involves value judgments (b) Robbins has made economics as a form of welfare economics (c) The Law of Demand is always true (d) None of the above 103. An economy achieves “ productive efficiency” when: (a) The best quality goods are produced (b) The highly skillful resources in the country are fully employed (c) All resources are utilized and goods and services are produced at least cost (d) None of the above 104. Economic goods are goods which: (a) Cannot be increased in quantity (b) Obey the law of Micro Economics (c) Are limited in supply and are scarce (d) Are limited to man-made goods. 105. Which of the following means an Economic activity? (a) Production of Goods (b) Production of Services (c) Consumption of Goods and Services (d) All of the above Common Proficiency Test (CPT) Volume - II 147 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 106. Which economy is now a myth only, as no country in the world is having that type of economy? (a) Capitalist Economy (b) Socialist Economy (c) Mixed Economy (d) None of the above 107. If the proportion of income spent on a goods decreases as income rises then income elasticity is: (a) Greater than one (b) Less than one (c) One (d) Zero 108. If two goods are totally unrelated, then cross elasticity between them is: (a) Zero (b) One (c) Infinite (d) None of the above 109. The income of a household rises by 20 percent, the demand for computer rises by 50%, this means computer is a/an: (a) Inferior good (b) Luxury good (c) Necessity (d) None of the above 110. Which of the following is considered production in Economics? (a) Teaching CA students in CA Institute by a teacher (b) Singing a song before friends (c) Flying kite for pleasure (d) Teaching to friends in a library any concept of Economics 111. The following is not the characteristic of Land: (a) Land varies in fertility and uses (b) Land is highly immobile (c) The supply of land is perfectly elastic from the point of view of the economy (d) The supply of land is perfectly inelastic from the point of view of the economy 112. Fiscal Policy is given by: (a) Ministry of Finance (b) RBI (c) Planning Commission (d) Parliament 113. In India, except in the Election year, Budget is given on: (a) Last day of March (b) 1st day of April (c) 1st January (d) Last day of February 114. SDR stands for: (a) Security Drawing Rights (b) Super Drawing Rights (c) Systematic Drawing Rights (d) Special Drawing Rights 148 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 115. PTA stands for: (a) Plurilateral Trade Agreements (b) Private Trade Agreements (c) Plurilateral Transaction Agreements (d) Public Trade Agreements 116. The number of members of WTO are (as in 2009) (a) 177 (b) 184 (c) 153 (d) 177 117. International Finance Corporation comes under: (a) WTO (b) World Bank (c) IMF (d) United Nation Development Associations 118. Which of the following is not the function of World Bank? (a) To help its member countries in the reconstruction and development of their territories (b) To provide finance for long-term purposes (c) To provide finance for short-term purposes (d) To encourage private foreign investment and credit by providing guarantee of repayment of private industries 119. IBRD (World Bank) was set up in: (a) 1946 (b) 1947 (c) 1945 (d) 1919 120. Fiscal Deficit minus borrowings and other liabilities is equal to: (a) Revenue Deficit (b) Primary Deficit (c) Capital Deficit (d) Budget Deficit 121. An increase in SLR will result in (a) An increase in revenue deficit (b) A decrease in revenue deficit (c) An increase in fiscal deficit (d) No change in fiscal deficit 122. Under which of the following tax system, more tax is imposed on the lower income group? (a) Regressive (b) Progressive (c) Value Added Tax (d) Proportional Tax 123. Open market purchase of government bonds by RBI will have the tendency to: (a) Decrease interest rates, but increase money supply (b) Decrease interest rates, but decrease money supply (c) Increase interest rates, but increase money supply (d) Increase interest rates, but decrease money supply Common Proficiency Test (CPT) Volume - II 149 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 124. Banks rate means: (a) Rate of interest paid by banks to depositors (b) Rate below which banks cannot lend money to borrowers (c) Rate of interest charged by RBI on its loan to other commercial banks (d) Rate of interest charged by commercial banks for loan given to RBI 125. When prices are rising and there is unemployment and recession in the economy, then the phenomenon is called: (a) Inflation (b) Stagflation (c) Deflation (d) Reflaction 126. When too much money chases too few goods the resulting inflation is called: (a) Deflation (b) Cost-push inflation (c) Stagflation (d) Demand-pull inflation 127. NLM stands for: (a) National Leprosy Mission (b) National Law Mission (c) National Logistic Mission (d) National Literacy Mission 128. Over the year, the incidence of malaria has _____________ (a) Increased (b) Reduced (c) Remained the same (d) Doubled 129. Who is regulatory authorities for securities market in India? (a) RBI (b) SEBI (c) TRAI (d) BSE 130. Postal network in India is __________ in the world. (a) Third largest (b) Second largest (c) Largest (d) Tenth largest 131. Which year is known as year of great divide for Indian population? (a) 1911 (b) 1921 (c) 1931 (d) 1941 132. India is passing through ___________ stage of Demographic Transition. (a) Fourth (b) First (c) Second (d) Third 150 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India Use following table to answer questions 133-136. Quantity Variable Cost Fixed Cost Total Cost AVC ATC MC 0 0 5 25 10 470 15 700 20 980 25 1350 30 1850 35 2520 40 3400 45 4530 50 5950 A firm operating in perfect competition sells as much as of its products as it chooses at a market price of Rs. 100 per unit. It Fixed cost is Rs. 300 and its Variable cost for different levels of production are shown in the above table 133. When production is 40 units, the average cost is: (a) Rs. 4.40 (b) Rs. 7.50 (c) Rs. 85 (d) Rs. 92.50 134. In the table, marginal cost per unit that corresponds to 40 units of production is: (a) Rs. 22 (b) Rs. 85 (c) Rs. 176 (d) Rs. 880 135. To maximize profit the firm should produce: (a) 15 units (b) 30 units (c) 35 units (d) 50 units 136. If the market price drops from Rs. 100 to Rs. 56 per unit, the firm’s short run response should be (a) Shut down (b) Produce 5 units (c) Produce 20 units (d) Continue to produce the same number of units as before the drop in price Common Proficiency Test (CPT) Volume - II 151 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 Use following table to answer questions 137 to 138 Hours of Labour Total Output Marginal Product 0 1 200 200 2 - 160 3 480 - 137. What is the total output when 2 hours of Labour are employed? (a) 160 (b) 200 (c) 360 (d) 400 138 What is the marginal product of the third hour labour? (a) 120 (b) 160 (c) 200 (d) 480 Use table to answer question 139-142 Mohan sweets is a small restaurant and a price taker. The table below provides the data of Mohan’s Sandwich output and costs in Rupees Quantity TC TFC TVC AVC AC MC 0 100 10 210 20 300 30 400 40 540 50 790 60 1060 139. If Sandwiches are being sold for Rs. 14 each, what is Mohan’s profit maximising level of output? (a) 10 Sandwiches (b) 40 Sandwiches (c) 50 Sandwiches (d) 60 Sandwiches 140. What is the total variable cost when 60 sandwich are produced? (a) Rs. 690 (b) Rs. 960 (c) Rs. 110 (d) Rs. 440 152 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 141. What is average fixed cost when 20 sandwiches are produced? (a) Rs. 5 (b) Rs. 3.33 (c) Rs. 10 (d) Rs. 2.5 142. Between 10 to 20 sandwiches, what is the marginal cost per sandwich? (a) Rs. 11 (b) Rs. 13 (c) Rs. 14 (d) Rs. 9 143. In July, 1991 Indian devalued the rupee by about: (a) 19% (b) 29% (c) 13% (d) 9% 144. The marginal product of a variable input is best described as: (a) Total product divided by the number of units of variable input (b) The additional output resulting from a one unit increase in the variable input (c) The additional output resulting from a one unit increase in both the variable and fixed inputs (d) None of the above 145. Which of the following is the most profitable, but least liquid asset of a commercial bank? (a) Loan and advances (b) Money at call and short notice (c) Bills discounted and purchased (d) Investment in Government securities 146. In the short run, when the output of a firm increases its average fixed cost: (a) Increases (b) Decreases (c) Remains constant (d) First declines then rise 147. Contraction of demand is the result of: (a) Decrease in the number of consumers (b) Increase in the price of the goods concerned (c) Increase in the price of other goods (d) Decrease in the income of purchases 148. The indifference curve approach assumes: (a) Rationality (b) Consistency (c) Transitivity (d) All of the above Common Proficiency Test (CPT) Volume - II 153 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 149. According to the 2001 census the total literacy rate is: (a) 32.5% (b) 52.1% (c) 65.4% (d) 75.8% 150. At the top 15 debtor countries of the world, India is ranked ___ by the world Bank (2008) (a) Sixth (b) Tenth (c) Eighth (d) Fifteenth SECTION – D : QUANTITATIVE APTITUDE (50 MARKS) 151. If one-fifth of one-third of one-half of number is 15, then number is (a) 400 (b) 450 (c) 500 (d) None of these 152. Three-fourth of one–fifth of a number is 60. The number is (a) 300 (b) 400 (c) 500 (d) None of these 153. Four-fifths of three-eighths of a number is 24. What is 25% of that number? (a) 100 (b) 160 (c) 1120 (d) 200 154. If the sum of a number and its square is 182, what is the number? (a) 13 (b) 14 (c) 15 (d) None of these 155. The sum of the digits of a two digit number is 12. If the digits are reversed, the number is decreased by 18. Find the number. (a) 75 (b) 93 (c) 84 (d) 57 156. A bag contains rupee, 50 paise and 25 paise coins in the ratio 10:14:18. If the total amount in the bag is Rs. 430, find the number of coins of each kind. (a) 200, 280, 360 (b) 280, 200, 360 (c) 360, 280, 200 (d) None of these 157. Two vessels contain equal quantity of mixtures of milk and water in the ratio 5:2 and 6:1 respectively. Both the mixtures are now mixed thoroughly. Find the ratio of milk to water in the new mixture so obtained. (a) 3:11 (b) 11:3 (c) 12:13 (d) None of these 154 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 158. The vessels contain water and milk in the ratio 1:2 and 2:5 are mixed in the ratio 1:4. The resulting mixture will have water and milk in the ratio. (a) 31:74 (b) 31:75 (c) 30:77 (d) None of these 159. The ratio of the incomes of two persons is 9:7 and the ratio of their expenditures is 4:3. If each of them saves Rs. 200 per month, then their monthly incomes. (a) Rs. 1,800, Rs. 1,400 (b) Rs. 1,600, Rs. 1,200 (c) Rs. 1,400, Rs. 1,200 (d) None of these 160. An amount of Rs. 950 is distributed among A, B & C in the ratio of 5:11:3, what is the difference between the share of B and A. (a) 300 (b) 340 (c) 500 (d) None of these e−x −e−1 161. Evaluate lim x→1 x−1 1 −1 (a) (b) e e (c) e (d) None of these (1+x)x −1 162. Evaluate lim x→0 x 1 (a) (b) –n n (c) n (d) None of these (x+2)5/3−(a+2)5/3 163. Evaluate lim x→0 x−a 5 5(a+2)1/3 (a) (a+2)2/3 (b) 3 3 5 (c) (a+2)1/2 (d) None of these 3 Common Proficiency Test (CPT) Volume - II 155 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 2x −3x 165. Evaluate lim x→0 x ⎛2⎞ (a) log 6 (b) log ⎜ ⎟ ⎝3⎠ 3 (c) log (d) None of these 2 166. If f’(x) = 3x2 + 2 & f(0) = 0 then find f(2). (a) 8 (b) 10 (c) 12 (d) None of these x+3 ∫ 167. Evaluate dx x2 +6x+4 1 ( ) 1 ( ) (a) log x2 +6x+4 +c (b) −x+log x2 +6x+c +c 2 2 (c) 1 log ( x+3 )+c (d) None of these 2 x−1 ∫ ex dx 168. Evaluate ( x+1 )3 ex +c (a) (x+1)2 (b) x2 + log (ex + 1) + c (c) (x + 1)2 + log (ex + 1) + c (d) None of these 169. Evaluate ∫ (3x+5)4dx (3x+5)5 (3x+5)5 (a) +c (b) +c 3 15 (3x+5)4 (c) +c (d) None of these 15 156 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India 170. Evaluate ∫ 7x+5 dx 2 1 (a) (7x+5)3/2 +c (b) (7x+5)3/2 +c 21 21 (c) (7x + 5)3/2 + c (d) None of these 171. Three gentlemen and three ladies are candidates for two vacancies. A voter has to vote for two candidates. In how many different ways can one cast his vote? (a) 10 (b) 12 (c) 15 (d) None of these 172. In a party of 40 people, each shakes hand with others. How many handshakes took place in the party? (a) 780 (b) 700 (c) 880 (d) None of these 173. How many different triangles can be formed joining the angular points of a polygon of m sides? m(m−1)(m−2) m(m−1) (a) (b) 6 2 (c) m (d) None of these 174. How many different cricket teams of 11 players can be selected from 14 cricket players of which only two can play as wicketkeeper? Given each team must have exactly one wicketkeeper? (a) 130 (b) 132 (c) 140 (d) None of these 175. Mr. X has 8 children of which he takes 3 at a time to the circus. Find, how many times a particular child goes to the circus? (a) 20 (b) 30 (c) 21 (d) None of these 176. If ax = by = cz and x, y, z are in G.P. then log a, log b and log c are in (a) A.P. (b) G.P. (c) A.P. and G.P. both (d) None of these Common Proficiency Test (CPT) Volume - II 157 © The Institute of Chartered Accountants of India MODEL TEST PAPER - 6 1 177. The 6th term from the end of the G.P. 8, 4, 2, 1, …………………………., is 1,024 1 (a) (b) 32 64 1 (c) (d) None of these 32 178. In a finite G.P., the product of two terms equi distant from the beginning and from the end is equal to the product of the first and the last term of the G.P. This statement is (a) True (b) False (c) Cannot say (d) None of these a c + 179. If a, b, c are in G.P., a, x, b and b, y, c are both in A.P., then is equal to x y (a) 1 (b) 0 (c) 2 (d) None of these 1 1 + 180. If a, b, c are in G.P., a, x, b and b, y, c are both in A.P., the value of is x y 1 2 (a) (b) b b 2 − (c) (d) None of these b 181. The number of times a particular item occurs in a given data is called its (a) Variation (b) Frequency (c) Cumulative frequency (d) None of these 182. The width of each of ten classes in a frequency distribution is 2.5 and the lower class boundary of the lowest class is 10.6. Which one of the following is the upper class boundary of the highest class? (a) 35.6 (b) 33.1 (c) 30.6 (d) None of these 158 Common Proficiency Test (CPT) Volume - II © The Institute of Chartered Accountants of India